Colorado voters could put more sports betting tax dollars toward water projects
Colorado voters may decide this November to lift the sports betting tax cap (currently $29 million) earmarked for water projects in the state.
House Bill 24-1436 (HB 24-1436) has bipartisan support in both chambers of the Colorado Legislature. If passed, it could put a ballot question to voters in November, raising $29 million.
Regarding the submission of a ballot question related to sports betting tax revenue and, in this regard, a ballot matter before the voters to allow the state to retain and expend any sports betting tax revenue in excess of twenty-nine "projected increases," the bill states, "2019 , voters approved millions of dollars in state tax revenue to fund water conservation and conservation projects, rather than returning those excess revenues to casinos.”
Currently, Colorado imposes a 10% tax rate on sports betting in the state. Some of the revenue generated is used to oversee operators and the rest goes to water projects, but that amount is capped at $29 million.
Sports betting has long been seen as a boon to Colorado’s water woes
In November 2020, Colorado voters approved Proposition DD, a ballot initiative that legalized sports betting and directed revenue toward water projects in the state. The following year, regulated Sports Betting was introduced there.
While the sports betting tax only brought in $19.4 million for state water projects in the first two fiscal years, total revenue since 2021 is about $43.1 million and is trending in the right direction , nearly tripling to $23.7 million in 2023. That will reach $7.9 million in fiscal year 2021, according to the Colorado Department of Revenue.
There are good reasons for passing HB 24-1436 and voter approval of the $29 million cap increase. Colorado needs to make more water investments, and if the sports betting tax cap is reached, any excess money will flow back into the industry.
“If a majority of voters in the November 2024 statewide election vote against allowing the state to retain and spend all tax revenue from sports betting as described above, all tax revenue of more than $29 million annually would flow to licensed sportsbooks” Refund The funding agency shall pay the sports betting tax according to the appropriate method determined by the Ministry of Finance,” the draft law states.
Colorado’s water needs are clear
Colorado is one of the fastest growing states in the United States. The state's population will be 5.84 million at the end of 2022, compared with 4.43 million at the beginning of this century, and some estimates suggest the state's population could nearly double by 2060. This results in a huge demand for water.
This population growth has also been a boon to the state’s sports betting revenue, demonstrating that HB 24-1436 is a rare example of timely, sensible bipartisan legislation.
Forecasts bear this out, with Brian Jackson, director of Western Water's environmental fund, telling The Colorado Sun that sports betting tax revenue could hit $31 million this fiscal year and $35 million by 2025, meaning The total is a whopping $8 million. There is a risk of backflow to gaming companies rather than water projects.
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Source: www.casino.org
